Company X sells $900 of merchandise on account to Company Y with credit terms of 2/10, n/30.If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check?

Question

Quizplus · Accepted Answer

The discount offered is 2% if paid within 10 days, so Company Y can save 2% of $900, which is $18. Therefore, the amount of the check will be $900 - $18 = $882. Option D is the correct answer.

Company X Sells $900 of Merchandise on Account to Company